M&S profits slashed in half by devastating cyber attack

MARKS & Spencer's profits have nosedived after its operation was brought to a near standstill by hackers.

- HOLLY WILLIAMS

And bosses say the slump has been compounded by comments from Chancellor Rachel Reeves, which have fuelled consumer anxiety over looming tax rises.

The retailer said interim underlying pretax profits plummeted 55.4% to £184.1million in the six months to September 27.

Profits were almost wiped out, plunging to £3.4million, down from £391.9million a year earlier.

The cyber attack in April cost the group £324million in lost sales, and is expected to dent profits by about £136million overall, with £101.6million of that in the first half.

Fashion sales fell 16.4% amid six weeks of online disruption, while digital revenues slumped 42.9% and store sales slipped 3.4%.

Against this backdrop, M&S chief executive Stuart Machin said Ms Reeves' pre-Budget speech on Tuesday had heightened customer concerns.